International Business

Limited growth in domestic market 

Innovation in multple markets

Foreign competition in home market 

Extension of product life cycle 

Improvements in communications and transportation 

Global Sourcing 

Plus - benefit of emerging markets 

• Cheaper 
• Mass Produced - Because of skilled workforce
• First Mover advantage
• More customers = more sales = more profit 
• Lower Costs

• May lead to bad image 
• Locals can be exploited 
• Costly - Setup / Market / Failure
• Poor Standards of living for local people 
• Language Barriers 
• Rules / Regulations 
• Trading Rules / Tarriffs 

Depends on the exchange rate

Culture - Any clashes?

Rules and Regulations 

Spending Power

Trading Blocks 

Means reducing the barriers to free trade and remove protectionism. 

Achieved through - Trading Blocs / WTO 

Free trade means no barriers to trade, protectism exists where they are barriers to trade. 

Tarrifs - (Tax on Imports)

Quotas 

Subsides 

Laws 

Foreign goods are less competitive because of higher price  - 

Subsidy is help from governement to import / support a dcomestic indistry e.g farmering 

Reduces costs / price in home market, it may prevent a country competing in that market.